If a basic illustration is used by an insurance agent or other authorized representative of the insurer in the sale of a life insurance policy and the policy is applied for as illustrated, a copy of that illustration, signed in accordance with this chapter, must be submitted to the insurer at the time of policy application. A printed copy also must be delivered to the applicant no later than at the time the application is submitted to the insurer.

1. (1) The acknowledgment must be signed by the applicant and the agent;
2. (2) One copy of the signed acknowledgment must be left with the applicant, and one copy must be submitted with the application. However, if the acknowledgement is presented electronically, the replacing insurer shall mail the applicant a copy of the acknowledgement within five business days after the application is submitted to the replacing insurer;
3. (3) The personal and policy information on which the computer screen illustration was based must be itemized in accordance with § 20:06:38:04;
4. (4) The acknowledgment must list the guaranteed and nonguaranteed interest rates illustrated;
5. (5) The acknowledgment must include the generic name of any rider illustrated, the company product name, if different, and the form number;
6. (6) The acknowledgment must contain a certification by the agent that the illustration used conforms to the information in the acknowledgment; and

7. (7) The acknowledgment must state that an illustration conforming to the policy as issued will be prepared and personally delivered by the agent on or before delivery of the policy.

   A sample acknowledgment is contained in Appendix B at the end of this chapter. If an acknowledgment is used, an illustration conforming to the policy as issued must be sent with the policy.

   If the policy is issued other than as applied for, a revised basic illustration conforming to the policy as issued must be sent with the policy. The revised illustration must conform to the requirements of this chapter, must be labeled "Revised Illustration" and must be signed and dated by the applicant or policy owner and agent or another authorized representative of the insurer no later than the time the policy is delivered. A printed copy must be delivered to the insurer and the policy owner.

However, if the illustration is displayed on a computer screen, the insurance agent or other representative of the insurer may provide the applicant with an acknowledgment in lieu of the illustration. The acknowledgment must meet the following requirements:

Source: 23 SDR 228, effective July 1, 1997; 24 SDR 33, effective September 22, 1997; 31 SDR 214, effective July 6, 2005.

General Authority: SDCL 58-33-5.1.

Law Implemented: SDCL 58-33-5.1.